Rupee drops by 37p to 4-week low of 62.16 against greenback
27 Dec 2013 12:31 AM GMT
Slow down in capital inflows following Christmas holidays too weighed on the rupee while better local equities and weak dollar overseas failed to restrict the rupee fall, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.85, which was also the day's high, a dollar from previous close of 61.79. Later, it gradually moved down further to a low of 62.17 before settling at 62.16, a net fall of 37 paise or 0.60Â per cent.
In the past three sessions, it had risen by 35 paise or 0.56Â per cent. Dealers attributed the fall in the rupee value to dollar demand from importers, mainly oil refiners, to meet their month end requirements. The Indian benchmark sensex on Thursday closed up by 41.88 points or 0.20Â per cent while FIIs picked up shares worth Rs 40.67 crore on Tuesday as per provisional data with stock exchanges. The dollar index, in a thin trade following Christmas holidays, was down by a mere 0.03Â per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services, India said,’Today rupee traded weak against the dollar, with dollar buying pressure from oil companies, however mild gains in the local equity market prevented further losses. After Wednesday’s gain, the dollar index which measures the greenback against a basket of six other currencies is trading weak which will help rupee to trade below 62 levels. The trading range for the spot USD/Re pair is expected to be within 61.50 to 62.50.’
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.85, which was also the day's high, a dollar from previous close of 61.79. Later, it gradually moved down further to a low of 62.17 before settling at 62.16, a net fall of 37 paise or 0.60Â per cent.
In the past three sessions, it had risen by 35 paise or 0.56Â per cent. Dealers attributed the fall in the rupee value to dollar demand from importers, mainly oil refiners, to meet their month end requirements. The Indian benchmark sensex on Thursday closed up by 41.88 points or 0.20Â per cent while FIIs picked up shares worth Rs 40.67 crore on Tuesday as per provisional data with stock exchanges. The dollar index, in a thin trade following Christmas holidays, was down by a mere 0.03Â per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services, India said,’Today rupee traded weak against the dollar, with dollar buying pressure from oil companies, however mild gains in the local equity market prevented further losses. After Wednesday’s gain, the dollar index which measures the greenback against a basket of six other currencies is trading weak which will help rupee to trade below 62 levels. The trading range for the spot USD/Re pair is expected to be within 61.50 to 62.50.’
Next Story
